Think having a budget is a rock-solid guarantee you’ll be successful with money?
Budgets are a lot like dieting. Have you ever tried to lose weight following the latest trending diet?
You get the eating plan, stock your cupboards with healthy food, buy a new pair of trainers and totally psych yourself into REALLY DOING IT THIS TIME!!!….
But then……..you don’t.
If all diets worked, most of us would be rocking abs and ridiculously perfect body fat percentages.
Budgets are the same. If they worked, wouldn’t every person who ever created a budget now be living their biggest money dreams?
We all know that isn’t the case.
The truth? A budget is useless towards creating financial freedom. Not only that, just saying the B word gets us feeling stressed –
It’s too hard to put one together
Even if I DO create one, sticking to it will suck!
Budget – uurggghhh there goes the fun times
The process of creating a budget does nothing to control your money – especially if you’re the type who struggles to manage your cash.
Like many diets, budgets can just be too hard and too regimented to stick with long term.
The problem with budgets
These are the common reasons budgets simply don’t work –
- Budgets don’t ‘actively’ help you control your money – they are just numbers on a spreadsheet or app
- Unexpected expenses always pop up that your budget doesn’t account for – budgets don’t take into account the variables of life
- Tracking every dollar you spend is tedious
- Budgets feel restrictive
- Budgets don’t guard against a lack of willpower (because, hello, we’re all human)
So if budgets don’t work, then what?
Well, I’m definitely not suggesting you do nothing to control your money!
While I can’t help you out with your 6 pack abs aspirations, I can share with you the best plan to get your finances on track and thriving!
Swap your budget for a Money Planner
The idea behind a Money Planner is to make a plan for your money rather than have your money rule you. Every person who achieves financial success has a plan for their money and puts that plan into action. The ‘action’ part is where budgets fall short.
To take control of your money, you need to have a system in place that automatically allocates the places your money needs to go to support your financial goals.
Unlike a budget, a Money Planner does the hard work for you.
A Money Planner – Uses automation to put you in control of your money
Ensures you meet expenses
Ensures money is available when you need it
Covers your living expenses
And, most importantly, automatically allocates money to invest and build wealth!
The key to a Money Planner is automating your financial life. Budgets rely on sheer willpower to not spend this or save that. We all know there’s a limit to willpower and it’s not long before we chuck in the towel and give up trying to be ‘good with our budget’.
Like those days you get fed up with the diet, hightail it to Mcdonald’s and order one of everything on the menu – upsized, thanks very much.
The power of an automated Money Planner means the temptation to overspend is drastically reduced because you won’t actually have extra money available to you. No willpower is needed.
Money Planner in action
A Money Planner directs your money where it needs to go, automatically, every pay cycle.
Setting up your automated financial system does require a few hours and some strategic thinking upfront. But once you’ve done the work, your finances are set to almost autopilot.
By setting up various bank accounts and transfers to cover expenses, spending, debt reduction, saving, and investing you know EVERYTHING is covered.
You can spend what you have in your spending account freely without worrying if enough will be left for bills…
…and you know every pay, without fail, you’re adding to your saving and investing plan.
Paying yourself first
A Money Planner also automatically puts in place the #1 habit when it comes to financial success – paying yourself first.
This means you prioritize your wealth creation activities first instead of waiting to see what’s left over at the end of the month to save or invest. Here’s a truth bomb – there’s never anything left.
The health of your future finances depends on you paying yourself first. Don’t leave this crucial step to willpower alone.
Financial success comes down to this…
You need a plan for your money that removes the hard part. Just like following a diet plan doesn’t actually control your urge to down a chocolate bar, a budget doesn’t actually put you in control of your money. Especially when you’re shopping and your willpower is definitely at its weakest!
Throw out the budget and move towards an automated system of money management that supports your spending, investing, and debt reduction plans – without the stress!
If you are ready to throw out the budget and get started with a plan for your money that works and will get your wealth-creating muscle working, schedule a Smart Investor call with me and we can chat about how to get you started today.